One in five U.S. properties sold in 2014 was a vacation home, the result of a thriving economy and strong consumer confidence.
The National Association of Realtors’ 2015 Investment and Vacation Home Survey
says that vacation home sales accounted for 21 percent of all U.S.
transactions in 2014. Vacation home sales surged 57.4 percent from 2013
to reach 1.13 million units — the most since the organization began
conducting the poll 12 years ago.
In a statement accompanying the survey, NAR Chief Economist Lawrence
Yun attributed the sizable uptick to both economic and home price
growth.
“Affluent households have greatly benefited from strong growth in the
stock market in recent years, and the steady rise in home prices has
likely given them reassurance that real estate remains an attractive
long-term investment,” he said.
NAR’s survey found that vacation homebuyers were taking home bigger
paychecks, with the median household income at $94,380 in 2014, a
year-over-year gain of 10.2 percent. These buyers are also
overwhelmingly optimistic about the country’s housing recovery, with 85
percent saying that now is a good time to purchase real estate.
While sales volume was up big, the median sales price for vacation
homes declined to $150,000, down 11.1 percent from 2013. According to
Yun, the drop in prices is the result of a trio of factors.
First, the number of vacation homebuyers who purchased a condo or a
townhouse rose from a year ago, although most — 54 percent — bought
single-family homes. Additionally, distressed properties accounted for a
greater share of vacation home sales in 2014 than they did in the
previous year. Finally, nearly half of all vacation homes sold last year
were located in the South, where prices tend to be lower than in other
parts of the country.
Regardless of property type or geography, vacation buyers prefer
coastal areas, with 40 percent purchasing a home at the beach. The
survey says that 19 percent of vacation homebuyers purchased properties
in the country while 17 percent bought homes in mountain regions.
(Photo: Flickr/Harvey Barrison)
Article and image sourced from http://blog.pacificunion.com/wealthy-americans-propel-vacation-home-sales-new-high/
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